Silvergate, a Fintech and crypto-focused bank, has reported another bullish quarter according to its latest earnings call. The Q3 Silvergate Bank stats show that they have been gaining on most fronts, especially with increased activity in the Silvergate Exchange Network (SEN). As earlier reported by BEG, this platform recently crossed the $100 billion mark in transfer volumes.

Notably, $36 billion of the total transfer volumes were done in the last quarter, according to the Silvergate Q3 report. The company’s CEO, Alan Lane, attributed this growth to increased activity and strong digital asset prices during the past quarter,

“During the third quarter, bitcoin and other digital currencies saw strong price appreciation and an active trading environment, which we believe contributed to the increase in the number of transactions occurring on the SEN.”

The California-based bank's growth has been quite exponential, most of which can be pegged to a burgeoning crypto industry in 2020. On that note, Silvergate reported a 29% increase in net income to $7.1 million compared to the previous $5.5 million in Q2. The figure also jumped year-over-year compared to 2019’s third quarter, where the reported net income stood at $6.7 million.

As for the market growth, Silvergate’s clients are now over 900, with a larger part being institutions. Lane has also pointed out that there around 200 prospective clients who might soon be onboarded as well. With such growth, he is confident that the debut of heavyweights like JP Morgan is not a threat to Silvergate’s sustainability and market expansion. In fact, Lane believed that exchanges are better off with more banking options,

“Those exchanges really want to have multiple banking partners and multiple sources of liquidity … And when volumes increase across the ecosystem and volumes are increasing from other customers, we're seeing the same type of volume increases from those customers that JP Morgan is reportedly banking.”

Silvergate also reported a spike in its clients’ deposits; the amount went up by $586 million, marking its second-highest quarterly increase after the 2017 bull-run. Consequently, the firm’s fee income increased to $3.3 million in Q3; this is a 40% gain compared to the Q2 $2.4 million fee income.

Another highlight is Silvergate’s lending service ‘SEN Leverage,’ which recorded a $13 million increase, bringing the total amount of credit approvals to $35.5 million. Lane is quite optimistic about this specific product, although there are no plans to scale past Bitcoin anytime soon,

“We anticipate a long growth trajectory for SEN Leverage and will judiciously expand credit availability to our customers over time.”

The post Silvergate Bank Q3 Earnings Call Upholds Bullish Trajectory; Net Income Shoots up by 29% to .1 Million first appeared on BitcoinExchangeGuide.

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